Production/sales How many gallons of spirits can I produce as a craft distiller? A craft distillery can produce 60,000 gallons a year. How much product can I sell to customers at my craft distillery? You may sell two liters per day per person of spirits of your own production for off-premises consumption. Sales must be reported monthly to the Liquor Control Board (see below). What is the process for selling my product at my craft distillery? All spirits must be sold at Washington liquor stores, with the exception of the product you can sell at your distillery.
In order to sell product at your distillery, you must follow this process:
After completing the [[/publications/liqpurchasing/New%20Listing%20Packet/Standard%20Price%20Quotation%20Form.doc|standard quotation form]], you will obtain a retail price from the WSLCB Purchasing Division (call 360-664-1600). This price will include state and federal taxes and the state markup.
You must sell your product at your distillery at the WSLCB retail price.
You must report any sales and production to the WSLCB Financial Division using the Craft Distillery Report Form.
LIQ-988 [[/publications/LIQ988-Craft-Distillery.xls|Excel format with Instructions]] | [[/publications/LIQ988-Craft-Distillery.pdf|PDF format with Instruction]]
You will be required to submit a payment based on your sales in Washington.
Product that you produce and sell at your distillery does not have to be transported to the WSLCB Distribution Center.
When are my tax reports due? [[/taxreporting/main|Tax reports]] must be postmarked on or before the 20th of the month following activity. A report must be filed each month, including those months when there is no activity. When the 20th falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U.S. Postal Service no later than the next postal business day. If you do not have any activity to report, you can file tax reports in advance.
Listing product How do I get my product sold in Washington liquor stores? You must go through the [[/suppliers/listing-spirits|WSLCB listing process]] in order to sell product in Washington liquor stores. Can customers purchase my product through special orders? Yes, as long as you have a [[/publications/liqpurchasing/New%20Listing%20Packet/Standard%20Price%20Quotation%20Form.doc|standard quotation form ]]on file with the WSLCB. How do I get my product sold in restaurants? Restaurants order and purchase spirits through their local liquor store. [[/suppliers/listing-spirits|Your product must be listed]] with the WSLCB in order for a restaurant to order it. Can I approach a restaurant directly to ask if they will sell my product? If you have an [[/publications/Liq36550%20ap%20for%20agents.pdf|Agent's license]], you may approach a restaurant and provide a sample of your product for their consideration.
Producing spirits as a hobby I want to make small amounts of distilled spirits as a hobby. Is this legal? No, it is illegal to produce distilled spirits without a license. It is also against the law to own a still.
If you wish to make small amounts of spirits, a craft distillery license allows you to produce 60,000 gallons or less a year with at least half of the raw materials used in the production grown in Washington. The license costs $100. [[/licensing/apply-liquor-license|Learn how to apply]].
Spirit samples Can I have a tasting room? Yes, you may have a tasting room that is physically separated from the production site. Retail sampling and sales cannot occur in the TTB bonded area. Can I sell samples of my distilled spirits to customers? No, sales of samples of spirits to customers are not allowed. Can I offer free samples to customers? A craft distillery may offer a maximum of two ounces per person per day free of charge at the distillery. An employee involved in the service of samples must have a [[/licensing/mast-permits|Mandatory Alcohol Server Training Permit]]. You must report these samples on your Craft Distillery Tax Form. Can I charge for using the glass for the sample? No, the sampling offered at the craft distillery must be offered free of charge. You can charge for a glass that the customer keeps (i.e. a commemorative glass), but it cannot be required that the customer purchase the glass to receive the sample. Can I put soda or water in my samples? No, the craft distillery or customer cannot add anything to a sample. The sample must be unaltered.
Special occasion events How can craft distilleries participate in a special occasion event?
A distillery or representative of a distillery can donate product to a 501(c)(3) or 501(c)(6) nonprofit.
A distillery representative can pour and educate the public about their spirits.
Please remember that the event is operated by the special occasion licensee, not the manufacturer.
A distillery may not sell spirits to the public during these events.
A distillery may not donate money of any kind to these events (booth fees, sponsorship)
http://liq.wa.gov/enforcement/distillery-faq Fees collected by the Liquor Control Board - Beginning December 8, 2011, when selling directly to retail customers, you must pay a 17% retail spirits license fee on your gross spirits sales. These fees are payable monthly, due the 20th of each month based on the prior month’s activity. These fees are calculated on the selling price, exclusive of all state taxes.
- Beginning March 1, 2012, when selling to licensed retailers, you must pay a 10% distributor license fee on your gross spirits sales. The fee is payable monthly, due the 20th of each month based on the prior month’s activity. This fee is calculated on the selling price, exclusive of all state taxes. Liquor taxes collected by Department of Revenue - Sales of spirits in their original containers to retail customers are subject to the liquor sales tax at the rate of 20.5 percent of the selling price and the liquor liter tax at the rate of $3.7708 per liter.
- Sales of spirits in their original containers to on-premises spirits retail licensees are subject to the liquor sales tax at the rate of 13.7 percent of the selling price and the liquor liter tax at the rate of $2.4408 per liter. http://liq.wa.gov/publications/Transition/1183-Letter-to-Distillers-Revised%2012-22-11.pdf
New distilleries in the state and those on tap
The state Liquor Control Board has approved licenses for five craft distilleries since a new law went into effect last summer and is considering applications from 13 more. A sixth was recently approved for a (noncraft) license: Dry Fly Distilling, Spokane (approved) Soft Tail Spirits, Woodinville (approved) Ellensburg Distillery, Ellensburg (approved) Dukes Hill Distillery, Sedro-Woolley (approved) Bainbridge Organic Distillers, Bainbridge Island (approved) Pacific Distillery, Woodinville (not craft license, approved) Mt. St. Helens Spirits, Amboy, Clark County Hidden Cove Distillery, Bainbridge Island Walla Walla Distilling, Walla Walla Challenger Ridge Vineyard & Cellars, Concrete Marrinier Distilleries, Arlington Golden Northwest Distillery, Bow, Skagit County Free Spirits Distilling, Chehalis Sodo Spirits Distillery, Seattle Clubhouse Cellars, Woodinville Firewater Distillery, Entiat, Chelan County RBDL, Arlington Golden Northwest Distillery, Bow, Skagit County Vin Co., Seattle Source: Washington State Liquor Control Board
(marketing section added 3/9/2012) Marketing Section Product Concept Vodka is typically a colorless distilled beverage, composed primarily of water and ethanol with traces of impurities and flavorings. It is made by the distillation of fermented grain (a type of potatoes, but also from other raw materials. Washington distillery has the innovative production concept, offering vodka of size of 375 ml, with capturing bottle designs. Products are locally produced by a family-based firm who is dedicated to achieve the best service as well as to meet the needs of the market in a timely and efficient manner. ð percentage of alcohol can be mentioned here, and other (special) features, will need to discuss with Nic Evidence of Market Needed Vodka bottle sizes available in the market are 750 ml and 1 liter. As of now, there is no company offering 375 ml size of vodka. ðThe increase in sales of other competitors, ðThe increase of competitors, distillers in the US and in local area ðReasons why 375 ml is marketable Target Market Analysis The target market of the company is divided to two segments. First are the women in high-income bracket. Second are the companies, like bars, restaurants or stores, who want to use the product as their house brand, with their own labels on the bottle. (does John want to have other target market?)
ðSize of the segment ðgrowth rate of the segment ðcompetition in the segment ðattainable market share given promotional budget and competitor’s expenditures ðrequired market share to break even ðsales potential for the firm in the segment ðexpected profit margin in the segment Target Market Segment Strategy The company is adopting the single-segment strategy, or concentrated strategy. One market segment is served with one marketing mix. Another strategy is individual marketing, in which the marketing mix is tailored on an individual consumer basis. ðI need to elaborate some more after some more research Value Proposition and Competitive Edge The goal is to provide a seamless, fully integrated service ensuring product quality, assurance of supply and full transparency/communication along the way and most of all, competitive cost. ðStill need to elaborate, I need to make some recommendations after research and discuss with team and John Marketing Strategy The company believes of considering eight marketing strategies: think big and audit time, be different and stand out from the competition, build relationship with customers, collect e-mail addresses, hire top sales people, sell online exclusive for local market, pay-per click advertising (if John is ok with building a website) and use customer service commandments to create good habits. ðShould elaborate more the process of planning and executing the conception, pricing, promotion and distribution ideas, goods and services Marketing Budget ðneed to be discussed with Tara after above statistical results have been gathered. Sales/Pricing Strategy ðthis will be done after the above statistical results have been gathered considering the points listed in http://www.netmba.com/marketing/pricing/ and will need to be discussed with team and John Sales & Marketing Channel Plan The company believes that the public can be best served through direct marketing. ðI should discuss the pros and cons of other marketing channel ========================================================================================
added: 3/2/2012
Prices of Vodka in the market:
(1) Abzolut Vodka: 750 ml - $18; 1 liter - $23 - $25
(2) Grey Goose Vodka: 750 ml - $28; 1 liter - $37 - $38
(3) Van Gogh Vodka: 750 ml - $25 - $30; 1 liter - $27
(4) Ketel One Vodka: 750 ml - $24 - $28; 1 liter - $30 - $31
(5) Chopin Vodka: 750 ml - $28 - $32; 1 liter - $42
(6) Belvedere Vodka: 750 ml - $25 - $30; 1 liter - $29 - $50
(7) Three Olives Vodka: 750 ml - $7 - $19; 1 liter - $7 - $24
(8) Stolichnaya Vodka : 750 ml - $7 - $56; 1 lier - $25 - $32
(9) Zyr Vodka: 750 ml - $29; 1 liter - $58
(10)Hangar One Vodka: 750 ml - $7; 1.75 liter - $30
Note: information from the links below for future use Vodka Vodka is a clear liquor manufactured from ethyl alcohol. It lacks color, and normally has very little taste or aroma.Vodka is the base ingredient for many cocktails, mixed drinks, and alcoholic products today. It is said to have been originally created from potatoes in Russia for medicinal purposes. Nowadays, Vodka is distilled from barley, wheat or rye.Adulterated vodkas are now a popular alternative to the original. These will normally contain a mixture of sweeteners, flavourings, colorings and fruit juices. Most flavored vodka contains 30-35% alcohol, whereas clear vodka is normally 40%, with a few brands offering a 50% product on top.
(per 1 oz serving)
(per 1 oz serving)
Calories (kcal) Energy (kj) Fats Carbohydrates Protein
I was not aware that vodka has this much amount of energy.
Intro: Vodka is the best mixing liquor of all of the base spirits as it has no distinct color, taste or aroma and is therefore essential to every bar. With a bottle of vodka and a few additional ingredients one can make a variety of cocktails including Vodka Tonic, Screwdriver, Cosmopolitan and so on. Distillation: The standard method of making vodka is by fermenting and distilling grain, although potatoes and beets are two popular alternatives. Vodka is a rectified spirit, meaning it is distilled at least three times, it is then filtered through charcoal. Vodka requires no aging and is ready to drink right away. Many vodkas are also infused with fruit or spice flavorings to create popular flavored vodkas like lemon, berry and pepper. Taste: Since vodka has no distinct taste a stylistic difference in the different brands is their texture on the tongue, or mouth feel. Two brands that represent the two prominent styles are Absolut and Stolichnaya. Absolut has an oily, silky sweet texture, while Stolichnaya is clean and watery with an almost medicinal finish. Heat: Most vodkas are 40 percent alcohol, however a distinct difference is the heat that is revealed on the tongue, this plays an important role in brand choice. Less expensive brands tend to burn in the mouth and throat while premium brands are quite smooth and excellent for shots and Martinis.
Will John’s be lined with the premium brands? 10 Weird Uses for Vodka Why Not Just Drink It? Vodka has been enjoyed since at least the early Middle Ages, and is well known as one of the world's most popular spirits. Its versatility in mixing and high alcohol content have made it extremely popular in cocktails, and it is still widely enjoyed 'neat' (straight up) in much of Eastern and Northern Europe. Vodka also has a long history of use as medicine, having been sold by druggists to cure everything from infertility to colic and the plague. While some of those historic promoters were half-cocked, it's true that vodka has a wide range of potential uses beyond serving as a relaxer and social lubricant. Why would you want to do anything else with vodka but drink it? It is widely available, effective and less toxic than many of the chemical alternatives you might use for these tasks. Treat Poison Ivy For many, one of the hazards of enjoying the great outdoors is an encounter with poison ivy, oak or sumac. It can lead to a nasty, long-lasting rash. Unfortunately, poison ivy is spreading, thanks to global warming. To avoid the uncomfortable reaction, immediately pour vodka on skin that has come into contact with poison ivy, and the alcohol will wash away the itchy culprit, urushiol oil. Some have said that the vodka needs to be at least 100 proof to work. Others have argued that straight rubbing alcohol works better, but we're guessing you may not have that as handy if you are on your average picnic Freshen Laundry The only people I know who like doing laundry have OCD. If you find the task calming, that's great. But the rest of us would prefer to wear clothes as much as possible without having to count quarters or lug baskets up and down stairs. You can keep your clothes smelling fresher with vodka — really! Simply spritz your duds with the stuff, then hang to dry in a well-ventilated area. (Do a spot-test first to be safe.) Vodka kills odor-causing bacteria, but doesn't leave a scent when dry. Shine Your Fixtures It's easy to get your chrome, glass and porcelain fixtures shining like the top of the Chrysler Building. Guess what does the trick? Moisten a soft, clean cloth with vodka, then apply a little elbow grease. Preserve Flowers If vodka can help you find love, then it can also help you preserve it — or at least the symbols of it. Add a few drops of vodka and a teaspoon of sugar to the water in your flower vase. It should help keep your flowers fresh longer. Change out the mixture with fresh ingredients daily Repel Insects Unless you are intent on proving how hard-core you are, or you have a bizarre fetish, you probably don't enjoy getting feasted on by insects. But you've read media reports questioning the safety of DEET-based repellents, and you are pretty sure you don't want to take the risk of spraying yourself in the face with poisonous bug killers. Who knew that vodka can kill pesky insects, as well as nagging doubts at the bar? Pour a little of the saucy spirit in a spray bottle and squirt on the little buggers, or yourself as a repellent. But please don't take aim at any beneficial bees! Soothe Jellyfish Stings Jellyfish are fascinating, beautiful sea creatures. But their stingers can pack a powerful, painful punch. For vegetarians and others who don't travel with meat tenderizer (or who don't feel comfortable asking friends to, um, relieve the pain), take heart. Vodka can also disinfect and alleviate some of the bite of a jellyfish sting. Get Great, Shiny Hair Vodka doesn't just make you think people look prettier. It actually can make people prettier. How? Try this remedy for healthier, lush hair: Add a jigger of vodka to a 12-ounce bottle of shampoo. Tell Billy Madison that vodka is better than both shampoo and conditioner. Clean Away Mold Got mold? The stuff spreads easily and can severely diminish indoor air quality. Unless you are shacking up with the Crypt Keeper, who wants to look at those grimy dark stains that build up on caulking (sometimes even on mold-resistant varieties)? But instead of harsh chemical sprays, try filling a recycled spray bottle with some bottom-shelf vodka. Spritz on, then let sit for 15 minutes. Scrub away with an old toothbrush (please don't use your sister's). Make a Soothing Lavender Tincture Do you find the scent of lavender soothing? Did you know that herbalists have used it for generations to naturally ease aches and pains? Here's a fun DIY tip: Fill a clean glass jar with fresh lavender flowers, then top off with vodka. Seal the lid tightly and place in the sun for three days (same idea as making sun tea!). Strain the resulting liquid through a coffee filter, and poof! You have a homemade tincture to rub into aches and pains. You can pour into smaller bottles, decorate them and give them as unique gifts. Ease a Toothache Got a toothache? Your first priority should be to see a dentist. But sometimes you can't get an appointment right away, or the professionals tell you it will just have to heal on its own. In that case, try swishing a shot of vodka over the affected area. It can help disinfect, and should numb some of the pain in your gums. Just beware that your honey may accuse you of smelling like a saloon. http://www.thedailygreen.com/green-homes/latest/vodka-uses-460424
A lot of reasons non-alcohol drinkers can be part of John’s market. Moreover, using it as an alternative will help the environment.
Geographic area name: United States
2007 North American Industry Classification System (NAICS) code: 312140
Meaning of 2007 North American Industry Classification System (NAICS) code: Distilleries
Year Code: 2007
Number of companies: 79
Number of establishments: 96
Establishments with 1 to 19 employees: 54
Establishments with 20 to 99 employees: 17
Establishments with 10 or more employees: 25
Number of employees: 8,857
Annual Payroll ($1,000): 431,657
Total fringe benefits ($1,000): 131,553
Employer’s cost for health insurance ($1,000): 54,883
Employer’s cost for defined benefit pension plans ($1,000): 8,707
Employer’s cost for defined contribution plans ($1,000): 9,864
Employer’s cost for other fringe benefits ($1,000): 58,099
Production workers average per year: 5,013
Production workers, for pay period including March 12: 4,999
Production workers, for pay period including June 12: 5,039
Production workers, for pay period including Sept 12: 4,977
Production workers, for pay period including Dec 12: 5,037
Production workers hours (1,000): 10,158
Source:http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_31I1&prodType=table
The U.S. is the largest manufacturer in the world, producing 22% of all goods.
Manufacturing accounts for 57% of all U.S. exports.
Manufacturing workers earn 18% more than other workers.
Manufacturing has the highest multiplier effect of any industry at 140%
Manufacturing is the most desired industry to create new jobs according to U.S. public opinion, 78% of the American public..
Source: http://www.themanufacturinginstitute.org/
================================================================================
(added 3/18/2012)============================================================================================
(added 3/17/2012)Distillery FAQ
Production/sales
How many gallons of spirits can I produce as a craft distiller? A craft distillery can produce 60,000 gallons a year.
How much product can I sell to customers at my craft distillery? You may sell two liters per day per person of spirits of your own production for off-premises consumption. Sales must be reported monthly to the Liquor Control Board (see below).
What is the process for selling my product at my craft distillery? All spirits must be sold at Washington liquor stores, with the exception of the product you can sell at your distillery.
In order to sell product at your distillery, you must follow this process:
- After completing the [[/publications/liqpurchasing/New%20Listing%20Packet/Standard%20Price%20Quotation%20Form.doc|standard quotation form]], you will obtain a retail price from the WSLCB Purchasing Division (call 360-664-1600). This price will include state and federal taxes and the state markup.
- You must sell your product at your distillery at the WSLCB retail price.
- You must report any sales and production to the WSLCB Financial Division using the Craft Distillery Report Form.
- LIQ-988 [[/publications/LIQ988-Craft-Distillery.xls|Excel format with Instructions]] | [[/publications/LIQ988-Craft-Distillery.pdf|PDF format with Instruction]]
- You will be required to submit a payment based on your sales in Washington.
- Product that you produce and sell at your distillery does not have to be transported to the WSLCB Distribution Center.
When are my tax reports due? [[/taxreporting/main|Tax reports]] must be postmarked on or before the 20th of the month following activity. A report must be filed each month, including those months when there is no activity. When the 20th falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U.S. Postal Service no later than the next postal business day. If you do not have any activity to report, you can file tax reports in advance.Listing product
How do I get my product sold in Washington liquor stores? You must go through the [[/suppliers/listing-spirits|WSLCB listing process]] in order to sell product in Washington liquor stores.
Can customers purchase my product through special orders? Yes, as long as you have a [[/publications/liqpurchasing/New%20Listing%20Packet/Standard%20Price%20Quotation%20Form.doc|standard quotation form ]]on file with the WSLCB.
How do I get my product sold in restaurants? Restaurants order and purchase spirits through their local liquor store. [[/suppliers/listing-spirits|Your product must be listed]] with the WSLCB in order for a restaurant to order it.
Can I approach a restaurant directly to ask if they will sell my product? If you have an [[/publications/Liq36550%20ap%20for%20agents.pdf|Agent's license]], you may approach a restaurant and provide a sample of your product for their consideration.
Producing spirits as a hobby
I want to make small amounts of distilled spirits as a hobby. Is this legal? No, it is illegal to produce distilled spirits without a license. It is also against the law to own a still.
If you wish to make small amounts of spirits, a craft distillery license allows you to produce 60,000 gallons or less a year with at least half of the raw materials used in the production grown in Washington. The license costs $100. [[/licensing/apply-liquor-license|Learn how to apply]].
Spirit samples
Can I have a tasting room? Yes, you may have a tasting room that is physically separated from the production site. Retail sampling and sales cannot occur in the TTB bonded area.
Can I sell samples of my distilled spirits to customers? No, sales of samples of spirits to customers are not allowed.
Can I offer free samples to customers? A craft distillery may offer a maximum of two ounces per person per day free of charge at the distillery. An employee involved in the service of samples must have a [[/licensing/mast-permits|Mandatory Alcohol Server Training Permit]]. You must report these samples on your Craft Distillery Tax Form.
Can I charge for using the glass for the sample? No, the sampling offered at the craft distillery must be offered free of charge. You can charge for a glass that the customer keeps (i.e. a commemorative glass), but it cannot be required that the customer purchase the glass to receive the sample.
Can I put soda or water in my samples? No, the craft distillery or customer cannot add anything to a sample. The sample must be unaltered.
Special occasion events
How can craft distilleries participate in a special occasion event?
http://liq.wa.gov/enforcement/distillery-faq
Fees collected by the Liquor Control Board
- Beginning December 8, 2011, when selling directly to retail customers, you must pay a 17% retail spirits license fee on your gross spirits sales. These fees are payable monthly, due the 20th of each month based on the prior month’s activity. These fees are calculated on the selling price, exclusive of all state taxes.
- Beginning March 1, 2012, when selling to licensed retailers, you must pay a 10% distributor license fee on your gross spirits sales. The fee is payable monthly, due the 20th of each month based on the prior month’s activity. This fee is calculated on the selling price, exclusive of all state taxes.
Liquor taxes collected by Department of Revenue
- Sales of spirits in their original containers to retail customers are subject to the liquor sales tax at the rate of 20.5 percent of the selling price and the liquor liter tax at the rate of $3.7708 per liter.
- Sales of spirits in their original containers to on-premises spirits retail licensees are subject to the liquor sales tax at the rate of 13.7 percent of the selling price and the liquor liter tax at the rate of $2.4408 per liter.
http://liq.wa.gov/publications/Transition/1183-Letter-to-Distillers-Revised%2012-22-11.pdf
New distilleries in the state and those on tap
The state Liquor Control Board has approved licenses for five craft distilleries since a new law went into effect last summer and is considering applications from 13 more. A sixth was recently approved for a (noncraft) license:
Dry Fly Distilling, Spokane (approved)
Soft Tail Spirits, Woodinville (approved)
Ellensburg Distillery, Ellensburg (approved)
Dukes Hill Distillery, Sedro-Woolley (approved)
Bainbridge Organic Distillers, Bainbridge Island (approved)
Pacific Distillery, Woodinville (not craft license, approved)
Mt. St. Helens Spirits, Amboy, Clark County
Hidden Cove Distillery, Bainbridge Island
Walla Walla Distilling,
Walla Walla
Challenger Ridge Vineyard & Cellars, Concrete
Marrinier Distilleries, Arlington
Golden Northwest Distillery, Bow, Skagit County
Free Spirits Distilling, Chehalis
Sodo Spirits Distillery, Seattle
Clubhouse Cellars, Woodinville
Firewater Distillery, Entiat, Chelan County
RBDL, Arlington
Golden Northwest Distillery, Bow, Skagit County
Vin Co., Seattle
Source: Washington State Liquor Control Board
================================================================================================
(marketing section added 3/9/2012)Marketing Section
Product Concept
Vodka is typically a colorless distilled beverage, composed primarily of water and ethanol with traces of impurities and flavorings. It is made by the distillation of fermented grain (a type of potatoes, but also from other raw materials. Washington distillery has the innovative production concept, offering vodka of size of 375 ml, with capturing bottle designs. Products are locally produced by a family-based firm who is dedicated to achieve the best service as well as to meet the needs of the market in a timely and efficient manner.
ð percentage of alcohol can be mentioned here, and other (special) features, will need to discuss with Nic
Evidence of Market Needed
Vodka bottle sizes available in the market are 750 ml and 1 liter. As of now, there is no company offering 375 ml size of vodka.
ð The increase in sales of other competitors,
ð The increase of competitors, distillers in the US and in local area
ð Reasons why 375 ml is marketable
Target Market Analysis
The target market of the company is divided to two segments. First are the women in high-income bracket. Second are the companies, like bars, restaurants or stores, who want to use the product as their house brand, with their own labels on the bottle. (does John want to have other target market?)
ð Size of the segment
ð growth rate of the segment
ð competition in the segment
ð attainable market share given promotional budget and competitor’s expenditures
ð required market share to break even
ð sales potential for the firm in the segment
ð expected profit margin in the segment
Target Market Segment Strategy
The company is adopting the single-segment strategy, or concentrated strategy. One market segment is served with one marketing mix. Another strategy is individual marketing, in which the marketing mix is tailored on an individual consumer basis.
ð I need to elaborate some more after some more research
Value Proposition and Competitive Edge
The goal is to provide a seamless, fully integrated service ensuring product quality, assurance of supply and full transparency/communication along the way and most of all, competitive cost.
ð Still need to elaborate, I need to make some recommendations after research and discuss with team and John
Marketing Strategy
The company believes of considering eight marketing strategies: think big and audit time, be different and stand out from the competition, build relationship with customers, collect e-mail addresses, hire top sales people, sell online exclusive for local market, pay-per click advertising (if John is ok with building a website) and use customer service commandments to create good habits.
ð Should elaborate more the process of planning and executing the conception, pricing, promotion and distribution ideas, goods and services
Marketing Budget
ð need to be discussed with Tara after above statistical results have been gathered.
Sales/Pricing Strategy
ð this will be done after the above statistical results have been gathered considering the points listed in http://www.netmba.com/marketing/pricing/ and will need to be discussed with team and John
Sales & Marketing Channel Plan
The company believes that the public can be best served through direct marketing.
ð I should discuss the pros and cons of other marketing channel
========================================================================================
added: 3/2/2012
Prices of Vodka in the market:
(1) Abzolut Vodka: 750 ml - $18; 1 liter - $23 - $25
(2) Grey Goose Vodka: 750 ml - $28; 1 liter - $37 - $38
(3) Van Gogh Vodka: 750 ml - $25 - $30; 1 liter - $27
(4) Ketel One Vodka: 750 ml - $24 - $28; 1 liter - $30 - $31
(5) Chopin Vodka: 750 ml - $28 - $32; 1 liter - $42
(6) Belvedere Vodka: 750 ml - $25 - $30; 1 liter - $29 - $50
(7) Three Olives Vodka: 750 ml - $7 - $19; 1 liter - $7 - $24
(8) Stolichnaya Vodka : 750 ml - $7 - $56; 1 lier - $25 - $32
(9) Zyr Vodka: 750 ml - $29; 1 liter - $58
(10)Hangar One Vodka: 750 ml - $7; 1.75 liter - $30
Source: www.nextag.com
Note: information from the links below for future use
Vodka
Vodka is a clear liquor manufactured from ethyl alcohol. It lacks color, and normally has very little taste or aroma.Vodka is the base ingredient for many cocktails, mixed drinks, and alcoholic products today. It is said to have been originally created from potatoes in Russia for medicinal purposes. Nowadays, Vodka is distilled from barley, wheat or rye.Adulterated vodkas are now a popular alternative to the original. These will normally contain a mixture of sweeteners, flavourings, colorings and fruit juices. Most flavored vodka contains 30-35% alcohol, whereas clear vodka is normally 40%, with a few brands offering a 50% product on top.
(per 1 oz serving)
(per 1 oz serving)
I was not aware that vodka has this much amount of energy.
Intro:
Vodka is the best mixing liquor of all of the base spirits as it has no distinct color, taste or aroma and is therefore essential to every bar. With a bottle of vodka and a few additional ingredients one can make a variety of cocktails including Vodka Tonic, Screwdriver, Cosmopolitan and so on.
Distillation:
The standard method of making vodka is by fermenting and distilling grain, although potatoes and beets are two popular alternatives. Vodka is a rectified spirit, meaning it is distilled at least three times, it is then filtered through charcoal. Vodka requires no aging and is ready to drink right away. Many vodkas are also infused with fruit or spice flavorings to create popular flavored vodkas like lemon, berry and pepper.
Taste:
Since vodka has no distinct taste a stylistic difference in the different brands is their texture on the tongue, or mouth feel. Two brands that represent the two prominent styles are Absolut and Stolichnaya. Absolut has an oily, silky sweet texture, while Stolichnaya is clean and watery with an almost medicinal finish.
Heat:
Most vodkas are 40 percent alcohol, however a distinct difference is the heat that is revealed on the tongue, this plays an important role in brand choice. Less expensive brands tend to burn in the mouth and throat while premium brands are quite smooth and excellent for shots and Martinis.
http://cocktails.about.com/od/spirits/p/vdka_101b.htm
“Heat: … a distinct difference is the heat that is revealed on the tongue, this plays an important role in brand choice.” - John’s vodka should be compared to other brands. Price and marketability will depend on whether it will tend to burn in the mouth and throat, or whether it is smooth.
10 Most Popular Brands of Premium Vodka
**Absolut Vodka**
Photo Courtesy: © Absolut Vodka
Absolut received most of its fame from innovative advertising depicting bottles of their vodka in various graphically enhanced situations. It has worked extremely well for the company and I admire the campaigns over the years. However, their vodka to me is good, but not great.
Absolut does give vodka drinkers a quality product . It is a clean tasting vodka that will (in moderation) not leave you screaming for ibuprofen in the morning. One thing I love about Absolut is innovation in flavors. Their city line of flavor vodkas almost always impresses me as they are truly unique flavor combinations that, though they are limited releases, are inspiring for homemade infusions.
**Grey Goose Vodka**
Photo Courtesy of: © Grey Goose Vodka
Grey Goose is one of my "go to" vodkas. When in doubt order Grey Goose, it's that simple because you will never be dissapointed. Grey Goose is one of the smoothest, most mixable vodkas you can find and it is every where. If you do not see this brand at your local bar or liquor store my suggestion is to go somewhere else because any reputable liquor provider will at least have the Grey Goose clear vodka. This is a staple.
Beyond their staple clear vodka, Grey Goose produces a nice line of flavored vodkas. The most impressive is La Poire, their pear-flavored vodka which is a delight in a variety of cocktails. I could mix with that one all day.
**Van Gogh Vodka**
Photo Courtesy of: © Van Gogh Imports
When it comes to premium vodkas, Van Gogh is undoubtedly one of the best and their product range tops 20 out at different vodkas as of 2010 and even though it began as a Dutch gin distillery, this brand is one of the best you will find when it comes to vodka.
The clear Van Gogh is a benchmark in vodka and is smooth, clean, and refreshing. Though, if you really want a vodka treat you have to check out the Van Gogh Blue, a triple wheat vodka that is profoundly smooth and surprisingly flavorful.
When it comes to flavored vodka, Van Gogh has almost anything you can imagine. You will find the "average" Orange, Mango, Citrus, and Pomegranate, but you will also find some decadence in the Espressos, Chocolate, and Caramel.
**Ketel One Vodka**
Photo Credit: © Shannon Graham
If you are seeking the ultimate of smooth vodkas with no frills, Ketel One is it. It is truly one of the cleanest vodkas you will come across and it's almost a shame to mix it into a cocktail because it is thrilling when it's chilled and served over a little ice. This is a vodka that begs to be shared among a few close friends using that vodka chiller set you love so much.
The Ketel One company thrives on the legacy of the Nolet family of Dutch distillers, which are now in the 10th generation, and this family legacy is unusual in the big names of vodka. You will also notice that their two flavored vodkas (Citroen and Oranje) are delicately flavored. If I mix Ketel One I like to keep it simple for that fact:a Vodka Tonic or Martini is best.
**Chopin Vodka**
Sandra Bullock with Enormous Bottle of Chopin Vodka
What makes Chopin unique? It is a Polish potato vodka named after the famous composer, Frederic Chopin. If you are looking for one of the smoothest vodkas available this is a great choice. Potato vodkas are not usually as well received as those distilled from grains, but the quality of Chopin will change anyone's mind about the spud. If you want to compare potato and grain vodkas, put this one side by side with Ketel One. You will have a great appreciation for both and expand your palate to recognize each base in the future.
While its counterparts have expanded to follow the flavored vodka trend, Chopin has remained a lone vodka brand. When you have a great thing, don't mess with it, and Chopin is without a doubt a great vodka.
**Belvedere Vodka**
Belvedere is one very fine Polish vodka that comes in an elegant frosted bottle that looks great on display in the bar. The original, clear bottling is the flagship of the brand and is an excellent choice for high-class cocktails. It's unique taste comes from the use rye, making it a vodka with some flavor backbone.
The brand is not as well known for the rest of their product line, though they are experimenting with some nice flavors. While Pink Grapefruit, Black Raspberry, Orange, and Citrus flavors are elegant and gentle, there is Belvedere IX (One-X), which is an infusion of 9 different flavors from cinnamon and almond to guarana, ginger, and jasmine. It's interesting to say the least.
**Three Olives Vodka**
Photo Courtesy: © Three Olives Vodka
Three Olives' line of vodka is one of my favorites to experiment with and I have a lot of fun coming up with new drinks from their creative and smooth flavors, though at times it is a challenge. Sure, Three Olives has a wonderful clear vodka and the flavors no vodka company can be without like berry and citrus, but if you look at their product line of 16 (as of 2010) you'll see some tastes you can't find elsewhere.
Some of the unique finds include Triple Shot Espresso, which is a wallop of caffeine and flavor, and the Root Beer is simply tasty, though somewhat limited. This is also the only brand I know of that has thought of Tomato vodka and it's interesting to say the least. You will also find Three Olives to have wonderful fruit vodkas.
**Stolichnaya Vodka**
Photo Courtesy of © Stolichnaya
Stolichnaya (better known as Stoli) is a perfect everyday premium vodka that is perfect for mixing in cocktails. This is one of the best Russian vodkas on the worldwide market and you can usually find most of their flavors right alongside the clear Stoli. One thing you will notice about this brand is that the flavors have a decidedly Russian flare to their names. If you see Peachik, Strasberi, or Oranj you can probably figure out that they are peach, stawberry, and orange respectively. All of the flavors have this unique spelling and they are all quite pleasant tasting as well. Try Peachik in a Cosmopolitan or Vanil in (what else?) a Black Russian.
**Zyr Vodka**
Photo Courtesy of: © Zyr Russian Vodka
Zyr is moving up on the list of favorite vodkas of all time. This Russian winter wheat and rye vodka is a fabulous find, though the drawback is that it is not as readily available as many of the others on this list. I had to include it simply because it is beginning to make a big name for itself and I want to encourage more vodka connoisseurs to think about keeping this in stock on a regular basis.
Like Chopin, Zyr is a one bottle top shelf vodka. You will (not yet anyway) find a flavored or over-proof Zyr and, as with Chopin, that would be unnecessary.
**Hangar One Vodka**
There are two aspects that make Hangar One different from the other popular premium vodkas. It is distilled from viognier grapes and it is done in an abandoned Navy aircraft hangar (thus the name). This is one of the newer brands on the list in the terms that it hasn't been as widely called for until the last few years. However, when you get a taste of it you will find out why it is becoming the call vodka of choice for many people.
The grapes are an interesting base distillate that only a few vodkas take on (most notably Ciroc), it takes skill to get it right, and Hangar One hit the nail on the head with their distillation. They also have some interesting flavors: Citron "Buddha's Hand", Kaffir Lime, and Mandarin Blossom.
http://cocktails.about.com/od/vodkareviews/tp/5-Most-Popular-Brands-Of-Premium-Vodka.htm
Will John’s be lined with the premium brands?
10 Weird Uses for Vodka
Why Not Just Drink It?
Vodka has been enjoyed since at least the early Middle Ages, and is well known as one of the world's most popular spirits. Its versatility in mixing and high alcohol content have made it extremely popular in cocktails, and it is still widely enjoyed 'neat' (straight up) in much of Eastern and Northern Europe.
Vodka also has a long history of use as medicine, having been sold by druggists to cure everything from infertility to colic and the plague. While some of those historic promoters were half-cocked, it's true that vodka has a wide range of potential uses beyond serving as a relaxer and social lubricant.
Why would you want to do anything else with vodka but drink it? It is widely available, effective and less toxic than many of the chemical alternatives you might use for these tasks.
Treat Poison Ivy
For many, one of the hazards of enjoying the great outdoors is an encounter with poison ivy, oak or sumac. It can lead to a nasty, long-lasting rash. Unfortunately, poison ivy is spreading, thanks to global warming.
To avoid the uncomfortable reaction, immediately pour vodka on skin that has come into contact with poison ivy, and the alcohol will wash away the itchy culprit, urushiol oil. Some have said that the vodka needs to be at least 100 proof to work.
Others have argued that straight rubbing alcohol works better, but we're guessing you may not have that as handy if you are on your average picnic
Freshen Laundry
The only people I know who like doing laundry have OCD. If you find the task calming, that's great. But the rest of us would prefer to wear clothes as much as possible without having to count quarters or lug baskets up and down stairs.
You can keep your clothes smelling fresher with vodka — really! Simply spritz your duds with the stuff, then hang to dry in a well-ventilated area. (Do a spot-test first to be safe.)
Vodka kills odor-causing bacteria, but doesn't leave a scent when dry.
Shine Your Fixtures
It's easy to get your chrome, glass and porcelain fixtures shining like the top of the Chrysler Building. Guess what does the trick?
Moisten a soft, clean cloth with vodka, then apply a little elbow grease.
Preserve Flowers
If vodka can help you find love, then it can also help you preserve it — or at least the symbols of it.
Add a few drops of vodka and a teaspoon of sugar to the water in your flower vase. It should help keep your flowers fresh longer. Change out the mixture with fresh ingredients daily
Repel Insects
Unless you are intent on proving how hard-core you are, or you have a bizarre fetish, you probably don't enjoy getting feasted on by insects. But you've read media reports questioning the safety of DEET-based repellents, and you are pretty sure you don't want to take the risk of spraying yourself in the face with poisonous bug killers.
Who knew that vodka can kill pesky insects, as well as nagging doubts at the bar? Pour a little of the saucy spirit in a spray bottle and squirt on the little buggers, or yourself as a repellent. But please don't take aim at any beneficial bees!
Soothe Jellyfish Stings
Jellyfish are fascinating, beautiful sea creatures. But their stingers can pack a powerful, painful punch.
For vegetarians and others who don't travel with meat tenderizer (or who don't feel comfortable asking friends to, um, relieve the pain), take heart. Vodka can also disinfect and alleviate some of the bite of a jellyfish sting.
Get Great, Shiny Hair
Vodka doesn't just make you think people look prettier. It actually can make people prettier. How?
Try this remedy for healthier, lush hair: Add a jigger of vodka to a 12-ounce bottle of shampoo.
Tell Billy Madison that vodka is better than both shampoo and conditioner.
Clean Away Mold
Got mold? The stuff spreads easily and can severely diminish indoor air quality. Unless you are shacking up with the Crypt Keeper, who wants to look at those grimy dark stains that build up on caulking (sometimes even on mold-resistant varieties)?
But instead of harsh chemical sprays, try filling a recycled spray bottle with some bottom-shelf vodka.
Spritz on, then let sit for 15 minutes. Scrub away with an old toothbrush (please don't use your sister's).
Make a Soothing Lavender Tincture
Do you find the scent of lavender soothing? Did you know that herbalists have used it for generations to naturally ease aches and pains? Here's a fun DIY tip:
Fill a clean glass jar with fresh lavender flowers, then top off with vodka. Seal the lid tightly and place in the sun for three days (same idea as making sun tea!).
Strain the resulting liquid through a coffee filter, and poof! You have a homemade tincture to rub into aches and pains. You can pour into smaller bottles, decorate them and give them as unique gifts.
Ease a Toothache
Got a toothache? Your first priority should be to see a dentist. But sometimes you can't get an appointment right away, or the professionals tell you it will just have to heal on its own.
In that case, try swishing a shot of vodka over the affected area. It can help disinfect, and should numb some of the pain in your gums. Just beware that your honey may accuse you of smelling like a saloon.
http://www.thedailygreen.com/green-homes/latest/vodka-uses-460424
A lot of reasons non-alcohol drinkers can be part of John’s market. Moreover, using it as an alternative will help the environment.
Geographic area name: United States
2007 North American Industry Classification System (NAICS) code: 312140
Meaning of 2007 North American Industry Classification System (NAICS) code: Distilleries
Year Code: 2007
Number of companies: 79
Number of establishments: 96
Establishments with 1 to 19 employees: 54
Establishments with 20 to 99 employees: 17
Establishments with 10 or more employees: 25
Number of employees: 8,857
Annual Payroll ($1,000): 431,657
Total fringe benefits ($1,000): 131,553
Employer’s cost for health insurance ($1,000): 54,883
Employer’s cost for defined benefit pension plans ($1,000): 8,707
Employer’s cost for defined contribution plans ($1,000): 9,864
Employer’s cost for other fringe benefits ($1,000): 58,099
Production workers average per year: 5,013
Production workers, for pay period including March 12: 4,999
Production workers, for pay period including June 12: 5,039
Production workers, for pay period including Sept 12: 4,977
Production workers, for pay period including Dec 12: 5,037
Production workers hours (1,000): 10,158
Source:http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_31I1&prodType=table
Total number of manufacturers – NAICS in 2007
Washington State: 7,650
Clark County in Washington: 457
Source: http://censtats.census.gov/cgi-bin/usac/usacomp.pl
Total number of manufacturer’s shipments, 2007 ($1,000)
Washington: 112,053,283
United States: 5,338,306,501
Source: http://quickfacts.census.gov/qfd/states/53000.html
The U.S. is the largest manufacturer in the world, producing 22% of all goods.
Manufacturing accounts for 57% of all U.S. exports.
Manufacturing workers earn 18% more than other workers.
Manufacturing has the highest multiplier effect of any industry at 140%
Manufacturing is the most desired industry to create new jobs according to U.S. public opinion, 78% of the American public..
Source: http://www.themanufacturinginstitute.org/